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Start-up of the Week: Huspy dominates mortgage sector

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From finding a home to financing it, Huspy is the one-stop solution to turn the 'Dream Property' into a reality

UAE-headquartered prop-tech start-up Huspy, which is redefining home buying in the Middle East and Europe, hit the headlines in November 2023 as its mortgage unit processed a record AED 1 billion plus (USD 270 million) deals in home financing.

Huspy’s milestone set an industry record for the UAE’s retail mortgage lending sector, as no financial institution crossed the AED 1 billion mark previously in a single month. As of February 2024, Huspy has firmly established itself as the Emirate’s largest mortgage platform with consistent growth, that too at a time when interest rate hikes and the subsequent rise in the borrowing rates are causing many potential home buyers around the world to stop pursuing their dream of having ‘Dream Properties’.

With the UAE’s property market witnessing a strong demand across off-plan projects, affordable homes, luxury residences and secondary sales, Huspy has become the single platform to help people find and close deals on their preferred property faster. Through Huspy’s partnerships with leading UAE banks, customers can choose from the most competitive interest rates starting from as low as 4.24% on a fixed three-year basis.

In today’s episode of the ‘Start-up of the Week’, International Finance will talk about Huspy’s business model and product solutions in detail, as the venture solidifies its position as one of the largest proptechs providing buyers with access to homes and financing in MENA (Middle East and North Africa) and Europe.

Huspy’s mortgage services are completely free for home buyers, while its innovative technology empowers the key players of the real estate ecosystem, be it brokers, agents or banks, to redefine the future of home buying.

Being The One-Stop Solution

Trusted by over 25% of the residential markets of MENA and Europe, Huspy possesses a team of experts, who have over 20 years of experience working for leading global and UAE banks. Driven by the commitment to ensuring a home financing option whose terms will be customer-centric, these experts help prospective property buyers sail through the entire mortgage process (from pre-approval to disbursal) with relative ease.

From finding a home to financing it, Huspy is the one-stop solution to turn the ‘Dream Property’ into a reality. Leveraging its partnerships with leading banks of MENA and Europe, Huspy has also developed its in-house ‘Mortgage Calculator’, thereby taking its property financing game to the next level.

Through Huspy, one can seamlessly learn about the latest real estate projects in the UAE and book his/her ‘Dream Accommodation’ there. Through the start-up’s digital portal, you can invest in Dubai’s off-plan projects, a move which will help the buyer earn a high ROI (Return On Investment) of up to 10%, along with flexible payment plans and a 10-year ‘UAE Golden Visa’.

Among the off-plan projects, Huspy is giving ‘High-Priority Booking’ to its customers in Al Marjan Island, Riverside Crescent by Sobha, Oasis Villas by Emaar, Serenity Mansions by Majid Al Futtaim and more.

When it comes to listing properties for sale, Huspy helps the customer to raise the deal value further by conducting a professional photo and video shoot of the place, followed by the property getting a top placement across portals so that it generates massive enquiries from global buyers too.

Arm’s goal is to cut down the complications around securing home loans (especially the expense part), through a digital product that will simplify the process for everyone.

Knowing The Business Model In Depth

Apart from helping its customers to buy and sell properties, Huspy also helps you to rent your property in a hassle-free manner, as all you need to do is to go to the venture’s website and fill out a form, following which Huspy’s team will reach out to you.

From marketing the property to finding the perfect tenant, Huspy does all the heavy lifting on the client’s behalf.

Huspy is also known for its online broker portal, which helps intermediaries sell, buy, and rent real estate projects. Huspy’s broker portal enables the broker to create a ‘Digital Case’ for his/her client, following which the venture takes over, and accesses lucrative bank rates and offers, before customising the ‘Digital Case’ and making it attractive for the property buyers.

“We’re the biggest mortgage broker in the UAE, which means we get access to the best bank rates. After entering your client’s information we’ll show you the best bank products on the market tailored to your client’s profile,” the venture stated further.

Also, throughout the process, the venture never approaches the client directly, apart from ensuring that its brokerage partners get the best market-leading commissions, that too within 10 days of the transaction getting completed.

The market-leading rates ensure that the brokers earn 20% higher commission every time their clients complete their mortgage payments.

An Unparalleled Mortgage Service

Huspy’s mortgage specialists have over 20 years of experience working for some of the biggest banks in the UAE, including Emirates NBD, RAKBANK, ADIB (Abu Dhabi Islamic Bank) and DIB (Dubai Islamic Bank).

The venture offers Resident Mortgages, Non-resident Mortgages (helping non-residents to buy properties in the UAE through low-documentation exclusive mortgage offers), Equity Release/Buyouts (helping the customer to unlock equity from a property the person already owns, or refinance an existing mortgage) and Commercial Finance (helping the beneficiary to buy a new building, or release equity on an existing one).

With Huspy, the applicant, instead of waiting two months to get a mortgage, can get the deal in two weeks by using the “Huspy Mortgage Fast Pass” from selected leading banks.

As the UAE continues to display its economic resilience, world-class lifestyle, and affordable financing, all these elements have led more people to build their lives in the Gulf nation and Huspy is turning dreams into realities by securing the best mortgages for its customers.

Homebuyers selecting Huspy on average can apply for a loan amount of AED 1.8 million. The company’s streamlined pre-approval processes are faster than its industry peers, ensuring high customer confidence in the UAE’s housing sector.

The Road Ahead

During his December 2023 interview with the Gulf News, Fouad Chemlati, General Manager for Mortgages at the Huspy, noted the new trend of non-resident buyers going for property shopping in the UAE as a very appealing investment option, that too with outright cash purchases.

While the above trend is mostly seen for bulk deals or ultra-luxurious homes, there are non-residents too, who still prefer the mortgage route.

“One of the reasons is the flexibility of local banks to lend and the competitive interest rates. Non-resident mortgage applicants do have to go through a few more criteria and can borrow up to 60% of the property value,” Chemlati remarked.

“With some banks introducing low document policies and competitive interest rates, it is now easier for non-residents to obtain financing with minimal documentation,” the official added further.

With the mortgage route still being the default option for property buyers in the UAE, Huspy is comfortably placed to revolutionise the practice through its “Huspy Mortgage Fast Pass”.

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